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Have questions about auto insurance requirements, insurance rates, or how insurance companies are calculating your insurance rates in Colorado? You have come to the right spot. We understand insurance shopping can be stressful, especially if you’ve recently gone through a bad claims process. So we’ve done our research and created this guide just for you.
How Much Insurance Is Required in Colorado?
The Colorado Department of Regulatory Agencies, Division of Insurance, requires all drivers in Colorado to have liability insurance with the following minimums:
- $25K Per Person
- $50K Per Accident
- $15K Property Damage
To make it cheaper for drivers, Colorado adopted a tort system in 2003. That means that the insurance company has to determine who was at fault in an accident before a claim is paid to help keep your rates lower.
Keep in mind, these minimums only cover liability. In other words, if your car is totaled or has extensive damage, you’ll need to pay for your own repairs and medical bills if your health insurance company doesn’t cover auto accident-related injuries.
Is Your Basic Coverage Enough?
A little can go a long way, except in auto insurance. You’ll want to make sure you have enough coverage and then some to protect you from bad things that can occur behind the wheel. Below is a list of additional coverages you should consider when shopping for car insurance in Colorado.
Collision Coverage –It sounds like what it is. If you crash into someone or something, this coverage can help. While limited in scope, this is the most expensive part of your insurance premium because it can often lead to the most costly insurance claims. This is separate from property damage liability.
Medical and Funeral Services Coverage – If a loved one is killed in an accident, you can make a claim. You’ll need to send documentation around the accident and your relationship to the deceased.
Uninsured/Underinsured Motorist Coverage – A lot of people drive underinsured or without any insurance at all. Protect yourself from these people by having this coverage. You can get these coverages stacked or unstacked depending on how much coverage you want.
Rental Car Coverage – If you can’t drive your car after an accident, how will you get to work, the store, or a movie? Having rental car coverage can help pay for a rental car while yours is out of commission. Generally, insurance will offer coverage for up to 30 days.
Towing and Labor Coverage – Towing and labor coverage can help pay for roadside assistance and/or towing fees of the vehicle covered under the policy. Some insurance companies offer it automatically as part of your auto insurance policy. Others charge a small amount on your annual premium for this optional coverage.
Want to make sure you are properly covered to drive in Colorado? Get a free insurance quote by entering your ZIP code below.
What Is The Average Cost of Car Insurance in Colorado?
Overpaying for car insurance is something no driver wants to experience. We’ve analyzed data from the Colorado Auto Insurance Premiums Report and found the most affordable car insurance, on average, come from the following companies in Colorado:
| Average Annual Rates | |
|---|---|
| USAA | $1,453.36 |
| Auto Owners Insurance | $1,472.85 |
| Geico | $1,503.92 |
| CSAA Insurance | $1,507.60 |
| Horace Mann | $1,516.79 |
Want more information on the most cheapest car insurance in Colorado based on driver profiles? We have you covered.
How Can You Save on Auto Insurance in Colorado?
If you get a quote from an insurance agent that is a bit too high be sure to ask about these common discounts. It could save you a few bucks.
- Multiple cars on a policy
- Safe or fuel-efficient vehicles
- Good grades
- Claims-free history
- Homeowners discounts
- Defensive driver courses
Why Does Your Insurance Cost What It Does?
A lot goes into determining your insurance rates. Some companies put a heavy emphasis on the age of the driver while others may focus on someone’s credit history when pricing a policy. Long story short, each insurance company has its own unique equation to price insurance policies. The more risky the company thinks you are the higher your rate will be. Here are a few of the variables many insurance companies use to price your policy in Colorado.
- Age
- Gender
- Marital status
- Make and model of vehicle
- Driving record
- Credit score
- Moving violations, parking tickets, and DUI and DWI charges
- Own/Rent a Home
Like we mentioned above, a lot goes into determining your rate. Chat with an agent at [mapi-phone /] to make sure you’re only paying for the policy that meets your needs.
What Proof of Insurance Actually Means
As a driver in Colorado, you must show proof of insurance if you’re pulled over or are an accident. If you can’t find your card, an officer can pull your information up in a database to check. Either way, you can still get a ticket and as you all know, tickets can make your insurance premium go up.
Auto Insurance Violations and Penalties
If you plan on driving in Colorado, be sure your policy carries enough coverage or you could face some fines or worse, including:
- Four points added to the driver’s license
- Minimum $500 fine
- 1st offense: Suspension of license until the driver can show proof of insurance
- 2nd offense: An eight-month suspension of license
- Community service
To avoid high insurance premiums, don’t let your coverage lapse and maintain at least the required insurance minimums!
Did You Know?
Tickets and irresponsible driving are ways to make your premiums go up. In some cases so is driving a commonly stolen car. Below are the most commonly stolen vehicles in Colorado:
- Honda Accord
- Honda Civic
- Ford Pickup (Full Size)
- Jeep Cherokee/Grand Cherokee
- Chevrolet Pickup (Full Size)
- Toyota Camry
- Dodge Pickup (Full Size)
- Acura Integra
- Ford Explorer
- Chevrolet Pickup (Small Size)
Still have questions about auto insurance in Colorado?
With years of experience navigating Colorado insurance policies, agents have the answers and suggestions you need to find the best policy to meet your needs. Call [mapi-phone /] to get a free quote today.
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